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Mercantilism

oboloo Glossary

Mercantilism

Mercantilism is an economic theory based on the belief that a country’s wealth and power is determined by its stock of money, gold, and other valuable resources. It advocates for governments to increase their exports and decrease imports in order to amass as much wealth and power as possible. The goal of mercantilism is to make sure that the nation’s trade balance is always positive, so that it is able to accumulate wealth and influence. By engaging in practices such as tariffs and subsidies, governments can use mercantilism to protect domestic industries and facilitate the development of strong industrial markets. Ultimately, mercantilism has been used throughout history to promote economic growth, increase national security and bolster political power.

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